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Request for Proposals REQUEST FOR PROPOSALS Lake Street Beach Redevelopment 860 N. Lake Street Gary, Indiana 46402 April 2019 CITY OF GARY Karen M. Freeman-Wilson, Mayor GARY REDEVELOPMENT COMMISSION Kenya A. Jones, President Eric E. Reaves, Vice President Namon Flournoy, Secretary Pastor Marion Johnson, Commissioner Bill Joiner, Commissioner Joe van Dyk, Executive Director Gilbert King, Jr., Counsel 1. General Site Information. PARCEL SIZE: 21.2 Acres ADDRESS: 860 North Lake Street Gary, IN 46403 FORMER USES: School Naval Training Center IMPROVEMENTS: 217,800 sq. ft. main building 192 space parking lot accessory garage buildings concession stand (defunct) The 860 North Lake Street property (“the Property”) is roughly twenty-one acres of lakefront real estate at the western gateway to the Indiana Dunes National Park adjacent to Gary’s Marquette Park to the east. The Property is located in Gary’s Miller neighborhood, served by the South Shore commuter rail. Chicago’s lakefront skyline, twenty-five miles away from the site, is visible from the Property. The Property represents the single largest commercial/recreational development opportunity on Lake Michigan east of Chicago with potential to be an anchor tourism destination, benefitting from the Indiana Dunes National Park, Lake Michigan beachfront, and Gary’s proximity to four national highways: I-80, I-94, I-65, and the Indiana Toll Road (I-90). Gary is a 30-minute drive from the nation’s third largest city, Chicago, and within a two-hour drive of four international airports and eleven major interstates. The Miller neighborhood, wherein the Property is located, is experiencing significant investment through both public infrastructure and private development. The estimated $315 million system-wide modernization of the South Shore rail line will result in renovated commuter rail infrastructure and a newly created terminus, Miller station, for express rail service to Chicago by 2022; $21 million in improvements to Lake Street and US Highways 12 and 20 will create pedestrian-oriented development via widened sidewalks, new lighting, bike lanes, and added off-street parking with construction scheduled for June of 2019. A dozen new businesses have located within the Property’s neighborhood servicing both residents and tourists. The Property’s adjacent beaches attract over 4 million visitors each summer and serve as a focal point for winter tourists looking to explore the Indiana Dunes National Park, Paul H. Douglas Center for Environmental Education, Indiana Dunes State Park, and Miller Woods. The Indiana Dunes National Park is comprised of over 15,000 acres of dunes, oak savannas, swamps, bogs, marshes, prairies, rivers and forests, navigable via the park’s nearly fifty miles of trails. Over 1,100 flowering plant species and ferns make their homes in the park and more than 350 species of birds have been observed here. Indiana Dunes National Park is the only national park within a 260-mile radius (St. Louis’ Gateway Arch is the closest), and the only one located in the greater Chicagoland Region. 2. Desired Project. The City of Gary and Gary Redevelopment Commission (collectively “The City”) seeks an anchor development for hospitality/tourism, commerce, and potential eco-tourism, to complement the Indiana dunes waterfront, while capitalizing on significant year-round traffic. This is a unique opportunity to provide an asset solely available at this location. Lake Street Beach is the northernmost activity center along a newly revitalized commercial corridor currently undergoing nearly $400 million in public investment. The City will consider the following uses: - hospitality/hotels/lodging - restaurants and dining - unique attractions (science centers, museums, recreational amenities, etc.) - tourist-oriented retail and pedestrian-oriented commerce As a destination site with a substantial potential impact, a responsive proposal will not only be an economic driver, but also respect the surrounding environment and enhance the quality of life for Gary’s residents. Gary’s residents and local businesses have communicated the following guiding principles through robust public conversation via the Marquette Plan (2005), City of Gary Comprehensive Plan (ongoing), Gary Northside Redevelopment Project (2013), and Miller Neighborhood Spotlight Initiative (ongoing). Focus on Eco-Tourism: The Indiana Dunes National Park draws 3.5 million visitors annually. The Property’s redevelopment is the single best chance to increase park traffic and highlight our natural assets. A responsive proposal will make the connection between nature and commercial opportunity. Preservation of Public Access: The Property includes a 600-foot stretch of Lake Street, the central north-south corridor that connects Lake Michigan’s beachfront with the Lake Street commercial node and Miller rail station. Lake Street and the existing Chanute Trail must remain freely accessible public rights-of-way providing access to the waterfront and park network. Public access of the beach is non-negotiable, and a responsive proposal will preserve/enhance public access to the Lake Michigan waterfront and seek to re-purpose or replace existing utilities and public facilities, including public restrooms. Protection of Existing Dunes and Wetlands: While the majority of the site consists of an already developed footprint, to the extent these areas abut natural dune features, a responsible proposal will preserve and enhance the natural assets that make the site unique and attractive; new development will observe a natural buffer from neighboring residences and natural assets. Attractive, Responsible Design: Whether reconstruction of the existing facility or construction of a new facility, design choices will complement and enhance the lakefront’s natural beauty. A responsive proposal will reflect the character of the lakeshore and exemplify accessibility through context sensitive universal design standards and pedestrian-oriented principles. 3. Environmental Information and Existing Conditions. In 2018, Michael Baker International and Orbis Environmental Consulting completed an environmental conditions assessment consisting of two components: 1. An ASTM Phase I Environmental Site Assessment (“Phase I”) that serves as due diligence in advance of sale or transfer. 2. An ecological survey and wetland delineation that provides an inventory of state and federal listed species located at the site and determines the nature and extent of regulated surface water. The Property includes several buildings and related infrastructure that have been on the site for many years. This area includes the Main Building, Maintenance Building, Storage Building, Bath House and Restrooms, and Parking Facilities. Based on findings and opinions generated by the Phase I, Michael Baker International concluded that the southwest corner of the Property has the following Recognized Environmental Conditions (RECs): Potential soil, groundwater, and/or vapor migration in and around the Maintenance Building; potential subsurface soil and/or groundwater contamination associated with two underground storage tanks; potential soil/groundwater contamination as part of numerous containers and soil staining from Armory activities; potential PCB surface soil contamination from current and previous transformers. There are no wetlands on the Property. The connectivity to adjacent environmentally significant land provides an excellent opportunity for stewardship and enhancement, adding value to the Property. The full environmental report is available online at www.gary.in.us/redevelopment/ and upon request. 4. Utilities The project area is serviced by the following utilities: • Electricity and Natural Gas Northern Indiana Public Service Company • Water Indiana American Water Company • Sewer Gary Sanitary District Property currently maintains adequate capacity for all previous uses to date. Upgrades to the utility infrastructure and other planning and design for water, sewer, storm water, and natural gas may be necessary to support some proposed projects and will be the responsibility of the developer. 5. Potential Funding and Incentive Opportunities. The City of Gary may be willing to partner on potential funding opportunities to the mutual benefit of developers and residents in order to maximize the value and local impact of a beachfront development. The Property is eligible for, though not limited to, the following programs: Opportunity Zone Program: Opportunity Zones provide federal capital gains tax advantages for investments made in federally designated areas per the Tax Cuts and Jobs Act of 2017. This designation is intended to attract capital investment into areas that are economically distressed, by deferring capital gains taxes for eligible investments. The Property is located in a designated Opportunity Zone census tract by the U.S. Department of Treasury and provides a valuable incentive for equity investors Gary Port Authority: The Gary Port Authority (the “GPA”) has broad governmental and business enterprise powers and may exercise those powers independent of any other political body. GPA is specifically authorized by state law to develop facilities with private enterprise and may do so through a public/private partnership sale and leaseback arrangement. Specifically, whether for itself or upon the request of a private party, the GPA may: • Construct, operate and/or maintain land-based real estate and maritime developments • Purchase, construct, sell, lease, and operate facilities • Enter
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